Gas and electricity prices in the EU collapsed: why it is very bad for Europe

From August 30 to September 1, the selling price of gas and electricity across Europe literally collapsed. Blue fuel on the TTF spot market fell from $3200 per thousand cubic meters to a meager $2400. The upcoming September futures reflect and support this trend. Together with the price of imported raw materials, quotations for wholesale electricity supplies fell sharply. For example, for Germany, the cost reduction was 36%, to 420 euros per MWh. Contracts for next year have completely lost more than half of their current value and are already being concluded at a price below 500 euros for the same quantity. Such data is provided by NordPool.

There is absolutely no good reason or reason for this collapse. In this case, the EU measures did not work. It has nothing to do with a 15% restriction on consumption or a “positive” effect from redistribution between countries. The austerity didn't help either. The matter is quite different, and experts are sounding the alarm.

The EU energy market is simply "killed", completely destabilized. It is full of expectations and hype, not law and predictability, the events that took place over the course of several months led him to disaster. Such processes can be compared with the painful states of the human body - the body physiologically fights the disease, the temperature rises, and when the internal forces run out, it itself decreases, which leads to the most sad consequences. Something similar is happening in the extremely overregulated and at the same time overly liberalized EU market. Such extremes are not in vain.

The worst sign and symptom for Germany is that the sharp price cut comes against the backdrop of a complete shutdown of the Baltic pipeline by Gazprom. Given the meager supplies to Moldova, total exports to the EU fell to a critical level of 80 million cubic meters per day. So the cost should have been rising, but it is falling.

This is happening because the demand for gas and electricity has fallen critically due to the dying industry in Germany and other countries such as Poland. Entire industries have been destroyed, such as the production of fertilizers and other chemicals, as well as energy-intensive metallurgy. Medium-sized businesses that provide services are also in decline due to increased payments for consumed resources. According to some reports, the reduction in the capacity of important enterprises will be up to 70%. This is the reason for the "long-awaited" reduction in gas prices. But nobody is happy. Because the industry is lost, UGS facilities are full, but what is stored there is not needed or available to anyone. In addition, LNG will go to Asia, which can still "digest" expensive imports.

A stalemate has developed: prices are still incredibly high, but not enough to compete for gas with other parts of the world. Industry and private households are doomed, and consumption has fallen by more than the 15% required by Brussels. In such a situation, only “green” activists who are indifferent to the civilizational development of mankind can rejoice at the withering away of the fossil fuel market. Having made their way through demagogy and populism into the official government of Germany, they achieved their goal: a large-scale energy crisis with an abundance of raw materials has come, no one needs fuel.
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  1. soloist2424 Offline soloist2424
    soloist2424 (Oleg) 2 September 2022 09: 35
    The Europeans seemed to want to get rid of their dependence on dirty Russian gas. So enjoy, gentlemen.
    1. GIS Offline GIS
      GIS (Ildus) 2 September 2022 10: 26
      )))) and not only from gas ... so the flag is in their hands and the drum is around their neck. let them go further and pass us by, we have our own affairs up to our throats
  2. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 2 September 2022 10: 24
    Peremoga ....
    Prices rose - bad, prices collapsed - bad, the whole "Industry and private households are doomed", everyone will die, wither, freeze, get sick and go to live in Siberia, closer to gas ....
    1. Bobik012 Offline Bobik012
      Bobik012 (Vladimir) 3 September 2022 12: 41
      There is nothing to be particularly happy about. If this is not a momentary subjective reaction to something, then the news is bad. This means a global crisis. For all. And, yes, yes, Europe will fly the most painful
  3. prior Offline prior
    prior (Vlad) 2 September 2022 11: 18
    Real rollercoasters.
    An excellent tool for emptying the pockets of ordinary Europeans.
    And everything is as democratic as they like.
  4. kriten Offline kriten
    kriten (Vladimir) 2 September 2022 11: 40
    the meaning is only in a few words: prices are jumping because there is no market and they are guided by rumors. And apparently little to do with reality.
  5. Seamaster Offline Seamaster
    Seamaster (Yuri Kiselev) 2 September 2022 11: 50
    It's like the story of the gypsy who started to train his horse to eat less. He achieved a reduction in soldering almost to zero, but the experiment had to be stopped - the horse died.
  6. maiman61 Offline maiman61
    maiman61 (Yuri) 2 September 2022 12: 27
    So that's great! Consumption has fallen, market prices have fallen, which means that production in the geyropa is turning in its grave! How many gay people were thrown out of the gates of production? And this is the potential for a protest movement!
  7. Vladimir Tuzakov (Vladimir Tuzakov) 2 September 2022 13: 52
    Of course, there is no need to rejoice that Europe has entered a crisis, but "for what they fought for, they ran into it," it is so clear to everyone, even Russophobes. We should not expect quick lifting of sanctions for the Russian Federation, the United States and the British are too dominant, but the failure of the anti-Russian hysteria is already visible. Solving problems with Ukraine and quickly is the main task for today, and tomorrow is not so bad, according to the existing beginnings of a deep crisis in Europe, they will not be up to sanctions.
  8. Valera75 Offline Valera75
    Valera75 (Valery) 2 September 2022 20: 06
    Their industrialists told the leadership of the geyropa itself about all this, well, here it is happening. Or did they think it would be different? In America, someone is now rubbing his hands with a smile, their plan has come true, the competitor is kneeling or even worse on all 4 bones.
  9. Victor 17 Offline Victor 17
    Victor 17 2 September 2022 21: 01
    The fact that people are dying in our country is nothing, but in the west, inflation has risen in price, energy resources have risen in price, now they will freeze, But why are there no articles and reports about those who are in the front line without electricity, water and heat at all for several months under shelling waiting - when will they come and help you evacuate to the right side.
    Why propaganda has sunk below the floor and replaced patriotism in the media
    1. maratkoRuEkb Offline maratkoRuEkb
      maratkoRuEkb (Marat) 5 September 2022 16: 31
      Did someone say it's nothing? It is not necessary to bring all the news in one heap. It is undoubtedly bad that our people are dying in Ukraine, but this is political news.
      In the frontline, people are without water and electricity because of the war. And your ahs and sighs will not help anyone. Silently do a good deed for the country.
  10. Vladimir1155 Offline Vladimir1155
    Vladimir1155 (Vladimir) 2 September 2022 21: 44
    insiders found out that Germany has surrendered to the mercy of Vladimir Putin and will begin to tearfully ask to launch SP2 (and SP1 too, the cold is not an aunt), promising with foam at the mouth and on their knees to no longer support the Ukrofascists (forgive us Uncle Vladimir, stupid and miserable Germans, more we won’t) ..... prices collapsed on this news
    1. Oleg Bratkov Offline Oleg Bratkov
      Oleg Bratkov (Oleg Bratkov) 3 September 2022 02: 45
      Quote: vladimir1155
      insiders found out that Germany has surrendered to the mercy of Vladimir Putin and will start tearfully ....

      Then they found out that it was a fake, and prices shot up...
  11. vlad127490 Offline vlad127490
    vlad127490 (Vlad Gor) 2 September 2022 22: 04
    Citizens of the Russian Federation are interested in their own problems, how to survive in this feudal-capitalist country. Worries about the problems of the EU, as well as discussing how badly they do not need it. While the fat one dries, the thin one dies. There was the USSR, now we need to build a new state, China is an example.
    1. Oleg Saidovich Offline Oleg Saidovich
      Oleg Saidovich (Oleg Saidovich) 4 September 2022 00: 28
      You see, those who wanted to learn how to survive learned long ago. And survives. And who drooled in the comments about the "revival of the USSR", some kind of "industrialization" (it is not clear by whose hands, if there are no personnel for this from the word at all), was waiting for the decay of the West since the Brezhnev era and only wanted free money for sitting in trousers in offices - for those it's bad. And it will be even worse.
  12. vvnab Offline vvnab
    vvnab (Vitali) 3 September 2022 01: 53
    Where are such conclusions from? )
  13. Oleg Bratkov Offline Oleg Bratkov
    Oleg Bratkov (Oleg Bratkov) 3 September 2022 02: 41
    Sanctions from countries without economies have placed a heavy burden on the shoulders of Russian industry...
  14. Dmitry Volkov Offline Dmitry Volkov
    Dmitry Volkov (Dmitry Volkov) 3 September 2022 08: 35
    The price in the EU will be one euro per kWh and m3 of gas...
    1. Oleg Saidovich Offline Oleg Saidovich
      Oleg Saidovich (Oleg Saidovich) 4 September 2022 00: 32
      You are pure Nostradamus. We don't even ask for reasons.
  15. Evset Magomedov Offline Evset Magomedov
    Evset Magomedov (Evset Magomedov) 3 September 2022 09: 04
    Just like in Russia, the dollar went up, all the prices for everything and everything UP, the dollar fell, and the prices went UP again.....
    1. Oleg Saidovich Offline Oleg Saidovich
      Oleg Saidovich (Oleg Saidovich) 4 September 2022 00: 36
      This only says that prices are related ONLY to demand and have nothing to do with the dollar. It would be bad if prices depended on the dollar, because. imported inflation would instantly gobble up your income.
  16. Awaz Offline Awaz
    Awaz (Walery) 4 September 2022 08: 11
    Yes, do not scare the Russian population with the fact that the EU has collapsed, fall apart or freeze. First, they would have to deal with their sheep.
    gas prices in the EU jump only because of speculation. Moreover, one must understand that basically all deliveries are under contracts and prices there are not at all the same as those of speculators. There is no economic need for such high prices, and there never was. The crooks were just making money. Since the situation is little by little, not only calming down, but moving into some understandable, more or less stable plane, so the hype calms down and prices should stabilize somewhere. At what level - this is another question, but most likely the prices will twitch a little more on the eve of winter and then finally the gas market will, at the very least, become even.